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Posts by Arthur Stupay

What can investor relations do about stock market volatility?

The market has been incredibly volatile in recent months, with some market moves of 200 to 400 points (close to 2 percent) on the Dow Jones Industrial Average. This is against the background of highly business-friendly tax reform, which is expected to boost reported earnings and cash flow in 2018.

Stock market analysts attribute these almost daily market gyrations to the uncertainty over the impact on American business of tariffs on steel and aluminum from China and some other countries, excluding Canada and Mexico. Other tariffs are threatened by the Trump Administration on a wide range of products, impacting an estimated $50 billion in trade. Indeed, in recent tweets and comments, President Trump has indicated that if China continues to unfairly inhibit U.S.…

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How MiFID II challenges the sell-side status quo

There is a lot of discussion on Wall Street regarding the new European rules regarding payment to securities firms for stock research (sell-side research). The research, often industry specific, provides company reviews and earnings forecasts, usually with a buy/sell recommendation.

In the EU in early January 2018, payment for sell-side research was put under strict rules called MiFID II (Markets in Financial Instruments Directive II). The aim of the new rules was to curb supposed excesses because they were sometimes used to cover high trading costs, expensive subscriptions and non-research items.

In the past, trading was part of the money management business and the commissions were to be used at the discretion of the manager. The client had little or no…

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